The FinancialContent Network     SocialPicks Community   |   MarketMinute Monitor   |   MarketMinute Market Updates   |   MarketMinute Stock News
SocialPicks
   Sign Up   |   Log In   |   What is SocialPicks?     
3 pts

Opinion on  Reynolds American Inc. (RAI)     Sector: Consumer/Non-Cyclical  >  Industry: Tobacco
Tobacco Stocks Smoking the Overall Market

Sep 14, 2008 05:33 PM GMT
Mikerun
Return Risk
+1.04% LOW
Principal

Tobacco Stocks Smoking the Overall Market

Global Tobacco Index Stats
Top 5 Companies by 1-Year Stock Gain
Top 5 Companies by Market Cap

The tobacco industry is smokin' the overall market and benchmark funds over the past year, thanks to news today that Altria ( MO ) is looking to buy smokeless tobacco company UST, Inc. ( UST ) for about $10 billion, and defensive buying by investors as economic uncertainties have dragged down the overall market the past few days. Another notable mover is Star Scientific ( STSI ), which has vaulted to gains of over 260% during the last year on a successful appeal for a patent infringement lawsuit against Reynolds American ( RAI ). The ruling opens the door for a possible legal settlement or the case will proceed to a trial.

A total of 25 companies are included in the Global Tobacco Index profiled in the accompanying tables with companies valued at over $200 million US Dollars. The Top 20 active companies are chosen by a rating system as equally-weighted components in the index. The Global Tobacco Index outpaced the S&P 500 ETF ( SPY ), along with the following benchmark funds: iShares Global Consumer Staples ( KXI ), Vanguard Consumer Staples ( VDC ), Consumer Staples Sector SPDR ( XLP ), and iShares Dow Jones Select Dividend ( DVY ). Only the Select Dividend ETF has a higher yield than the 4.1% average for the Global Tobacco Index, but DVY is down 23.9% over the past year which more than offsets its high 4.9% yield.


RAI:  This call was made on 09/14/08 @ $49.0
Rating:   Positive   $49.0 (09/14/08)
Closed:   10/16/2008 @ $42.82 (-12.61% in 32 days)


Comments (1)

Add Comment

Arrow_up
Arrow_down
Jpeg_sun4agk
Locationh   61%     1 point   commented 434 days ago reply

Great call


Your Comment



ROCK-STAR INVESTORS
Rank Name Sharpe Ratio Avg Return Followers
1 21.10 +34.25% 378
2 18.14 +70.10% 208
3 17.66 +25.70% 55
4 13.47 +14.32% 61
5 12.13 +75.30% 38


POPULAR STOCKS
Symbol Company Name Sentiment

TODAY'S HEADLINES

TODAY'S TOP PICKS

 
Reynolds American Inc. (RAI)
   SocialPicks Sentiment:   

   This Quarter's Sentiment:
All:
96.5%
Top:
100.0%




Latest Picks by Mike Havrilla
Symbol SP Sentiment Rating Return Since
NVO Positive -0.08% 11/22/09
DNDN Positive +0.39% 11/20/09
UNIFF N/A Positive n/a 11/19/09
BIO Positive -0.91% 11/19/09
ECTE N/A Positive n/a 11/19/09

View All >
   
Mike Havrilla previously rated RAI
Positive +49.41% Expert Panel Recommends FDA Regulation of Tobacco
02/26/2009
9
Positive -16.54% New Global Tobacco Index: A High-Yield Safe Haven
12/21/2008
9
Positive -8.74% New Global Tobacco Index: Big Dividends, Solid Returns
11/18/2008
9
Positive -3.19% Global Tobacco Index: High Yields and Continued M&A
10/27/2008
9
Positive +7.68% Safe Haven Tobacco Stocks Post Solid Returns & High Yield
10/16/2008
9





IN THE PRESS
Press_forbes Press_washingtonpost Press_wsj Press_npr Press_techcrunch